A price-taking firm can exert no control over price because
A. no other firms make a product that is nearly identical to its product.
B. the firm's individual production is insignificant relative to total production in the industry.
C. of a lack of substitutes for the product.
D. the firm's demand curve is downward sloping.
Answer: B
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An upward-sloping Engel curve indicates that
a. the good is normal. b. the good is inferior. c. demand for this good is elastic. d. demand for this good is inelastic.
A command-and-control policy:
A. usually does not result in the use of the most efficient pollution abatement technology. B. does not affect the production costs of firms. C. usually finds the most efficient pollution abatement technology. D. increases the incentive for firms to develop efficient abatement technologies.